Australia, India to cooperate on energy security
Sydney (13 July)
The Australian and Indian Governments will maintain the flow of coal and liquid fuels – including refined oils and natural gas – between their countries, according to a joint statement released on 9 July.
The two governments will also encourage renewable generation and collaborate to support low-carbon liquid fuel developers, Australian Prime Minister Anthony Albanese and Indian Prime Minister Narendra Modi said.
“Amid global instability, [the joint] statement deepens our connection as stable energy partners, creating a more secure energy future for both nations,” Energy Minister Chris Bowen said later in the day. “[We] understand the importance of practical action on climate and the significant economic opportunity the energy transition presents,” Bowen added.
Indian refiners accounted for 10% of Australia’s refined oil imports in 2024, while Australian producers accounted for 35% of India’s coal imports over the same period, data from the Observatory of Economic Complexity (OEC) show.
Indian refiners buy about 47% of their crude imports from Persian Gulf-based producers, who rely on the now-closed Strait of Hormuz, according to OEC. They have reduced their dependence on Persian Gulf-based producers since the start of Russia’s 2022 invasion of Ukraine by buying Russian crude oil.
Russia accounted for 37% of India’s crude oil imports in 2024, up from 15% in 2022 and 0.88% in 2021, OEC data show.
“India began importing [oil] from Russia because traditional supplies were diverted to Europe after the outbreak of the [Ukraine] conflict,” an Indian Ministry of External Affairs spokesperson said in 2025.
“India’s imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation,” the spokesperson added.
Australia’s joint statement with India is the latest in a string of energy cooperation deals signed by Australia to protect the flow of essential goods. The Australian Government has secured energy supply commitments from the Japanese, Malaysian, Singaporean, South Korean, and Bruneian Governments since the US-Israeli war in Iran began on 27 March.
Australia has 41 days’ worth of petrol reserves, 37 days’ worth of diesel reserves, and 33 days’ worth of jet fuel reserves, Education Minister Jason Clare told reporters on 11 July. The country’s diesel and jet fuel reserves are down from a week earlier, Clare said.
Ships carrying another 3.5 billion litres of fuel – including refined and crude oil – are set to arrive in Australia over the next month, according to Clare. Planned fuel deliveries are down from 3.6 billion litres over the month from 4 July.
By Avinash Govind